What is a distribution strategy?

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A distribution strategy is a plan created by the manufacturing department of a company that outlines how the company aims to make its products available to retailers, intermediaries and consumers. The strategy focuses on the location of the target market, transportation and the storage of the stock.

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Many companies find it cheaper and easier to distribute their products through retailers and intermediaries rather than directly to end consumers. Some small companies will likely sell their products directly to the consumers. Before developing the strategy, companies first will determine the most convenient way to distribute its goods. It will also focus on the cost, the number of customers and the methods used by its competitors.